Overview
Richard Vallat is a highly sought-after KC who provides advice and advocacy in all areas of revenue law including: personal tax, corporate tax, VAT and other indirect taxes, stamp duty, stamp duty land tax and tax-related litigation such as professional negligence.
He is ranked in Chambers UK Bar and Legal 500 for corporate, indirect and private client tax. Known as “a brilliant lawyer” who is “very bright, technically able and a strong advocate”, clients also value the fact that he is “approachable and very practical.”
Richard is the current Chair of the Revenue Bar Association as well as the Chair of Chambers Pupillage and Tenancy committees. He is also a moderator of the Trust Litigation Forum.
Richard is qualified to accept Public Access instructions.
A copy of Richard Vallat’s privacy notice can be found here.
Corporate tax
Richard is a leading silk for all areas of corporate tax. He has particular experience in issues relating to:
- tax avoidance schemes (eg film finance, the DOTAS rules, accelerated payment notices (APN) and follower notices).
- transfer pricing, partnership mixed membership rules and disguised investment management fee/carried interest rules – all of which frequently in the hedge fund deferred remuneration cases in which Richard is involved.
- unallowable purposes.
- “main purpose” in a corporate tax setting.
- property tax (eg stamp duty on shares or real property)
- capital allowance advice and disputes
- professional negligence issues relating to corporate tax advice
- contractual disputes with tax elements
Richard has been ranked by the legal directories for many years as one of the top corporate tax barristers. They note that he is creative, intelligent, efficient and equally excellent on his feet as on paper. ”He thinks around problems and suggests superb alternatives” and “has immense clarity of thinking, presenting clear and succinct legal analysis which is also practical and pragmatic.”
Whilst much of his work in this area is advisory, he is involved in some of the largest and most significant corporate tax cases. Examples of Richard’s recent work include:
- Ingenious Film Partners v HMRC – one of the largest and most high profile of the film scheme cases. This is a notable case since it involved c.£700 million of tax relating to well over £1 billion of film finance transactions used to fund many of the biggest British hit movies of the last decade, a large tax scheme devised by a major firm of accountants and many HNW individuals/celebrities who invested.
- Inmarsat plc v HMRC – This leading case concerns whether the large amounts needed to launch satellites can be claimed as capital allowances. The Court of Appeal has clarified some areas of the Capital Allowances Code and confirmed the approach to be taken in relation to deeming provisions in statutes.
- Hargreaves Property Holdings Ltd v HMRC –important FTT decision dismissing the taxpayer’s appeal against assessments to income tax on the basis that the taxpayer had a duty to deduct withholding tax (with the exception of certain de minimis amounts) on certain interest payments. The Tribunal gave a clear and useful exposition of the law on UK withholding tax of interest payments. More particularly, it considered key concepts in this area such as ‘UK source’ (the FTT held that the underlying commercial reality was that the interest paid on the loans arose in the UK), ‘yearly interest’, and application of the principles in McGuckian/Ramsay.
- Bluecrest Capital Management v HMRC – the first case to consider the application of the salaried members legislation in ss863A – G ITTOIA 2005.
- Gala LLP v HMRC – A film finance case where the LLP claimed trading losses but these were not ultimately allowed.
Indirect tax
Richard is known as: “a brilliant lawyer who knows SDLT like the back of his hand. He is particularly good on VAT and film finance issues and is a genuine expert on all tax-related matters.”
His advisory and litigation experience covers areas such as:
- stamp taxes. This is an area in which Richard has a particular interest including:
-
- SDLT on high value residential property transactions including partnerships and close companies / de-enveloping; consequences of historic planning for new purchasers; “mixed use” arguments; multiple dwellings relief.
- SDLT on various commercial property transactions including classification of buildings and restructuring of property holding unit trusts.
- SDRT including Henderson Investment Funds (redemption of units in unit trust; strict construction of relief)
- VAT administration and assessment
- Settlement issues eg relating to classification, charities, commercial and residential property
Much of Richard’s work in this area is confidential but some of his recent work includes:
- The VAT and SDLT issues arising on the acquisition and development of student accommodation.
- The VAT implications of a major sale and leaseback transaction.
- The validity of furlough claims as regards cabin crew.
- VAT issues arising in relation to the operation of an employment agency.
- The application of the SDLT anti-avoidance rules in s75A Finance Act 2003 in relation to restructuring transactions which affect the way a major property operator holds commercial sites.
- VAT on membership fees.
Private client
Richard regularly handles large significant personal tax planning advice and litigation and has done throughout his career, gaining a high degree of expertise in IHT, income tax, CGT, SDLT and planning with offshore trusts.
Chambers UK Bar and Legal 500 both recommend Richard as a leading tax silk in private client tax. They laud him for being: “technically very, very good” and for offering “excellent advice and knowledge when it comes to cases concerning estates with offshore trust and tax aspects.”
His recent work includes:
- Ingenious Games -v- HMRC – A major film finance scheme used to fund many of the biggest British hit movies of the last decade and involving many HNW individuals and numerous celebrities.
- Chalcot – In this matter there were arguments of whether arrangements made between a company and its two employed shareholder/directors with a view to avoiding tax amounted to the allotment of shares at a discount contrary to section 580 of the Companies Act 2006 and as well as whether the arrangements involved the payment of the company’s shares or capital money in consideration of an agreement to subscribe for shares contrary to section 552 of the Act.
- Hargreaves Property Holdings Ltd v HMRC – a case involving an appeal against assessments to income tax on the basis that the taxpayer had a duty to deduct withholding tax pursuant to s. 874 Income Tax Act 2007 (“ITA 2007”) on certain interest payments.
- HMRC v Jason Wilkes – A case involving Income Tax, High Income Child Benefit Charge and Discovery Assessments. Richard persuaded the Upper Tax Tribunal that, where a taxpayer had not submitted a self-assessment return, HMRC could not issue a discovery assessment under TMA 1970 s 29(1)(a) in respect of an unpaid high income child benefit charge.
- HMRC v Pride
- domiciliary issues
- tax planning on divorce
- business property relief on estates.
Employee remuneration
Richard is an experienced silk in relation to employment tax, handling issues such as employment related securities, employee benefit trusts/Part 7A, Agency Worker/MSCs/IR35 and Off-Payroll Working and the tax treatment of settlement agreements.
His expertise in this area also includes advice and advocacy in relation to indirect tax.
Some recent cases in this area include:
- Bluecrest Capital Management v HMRC – This was the first case to consider the application of the salaried members legislation in ss863A – G ITTOIA 2005.
- Advising an employment agency in relation to Kittel liability, other HMRC remedies (eg direct recovery) and supply analysis.
- Chalcot – A matter which centred around arguments of whether arrangements made between a company and its two employed shareholder/directors with a view to avoiding tax amounted to the allotment of shares at a discount contrary to section 580 of the Companies Act 2006.
- GW / Quadrant (judgment awaited) – A substantive tax appeal relating to similar arrangements to those considered in Chalcot
- The Best Connection (judgment awaited) – Appeal relating to the effectiveness of salary sacrifice scheme covering subsistence and travel – scope and effect of dispensation – best judgment assessment – reg 73 appeals
Offshore/international work
Richard’s recent work in this area covers offshore trusts, employee benefit trusts, pensions, remittance planning, and questions relating to residence and domicile.
He is used to working with advisers in other jurisdictions to balance often competing requirements and find solutions that work for international clients.
On the corporate side, Richard’s work includes issues such as where interest arises for UK tax purposes and the “beneficial entitlement” to that interest (see Hargreaves Property Holdings Ltd [2024] EWCA Civ 365).
Directory quotes
Chambers and Partners High Net Worth
Tax: Private Client
Ranking: Band 1
The directory states:
- “Richard Vallat KC is excellent: extremely bright, grasps all the issues and responds quickly.” (2024)
- “Richard’s advice was clear, well structured, practical and commercially minded.” (2024)
- “Richard is incredibly smart, knowledgeable and quick.” (2024)
- “properly clever, rated extremely highly and a go-to barrister.” (2022)
- “a very practical approach and the ability to explain this both to other professionals and to clients…. he is particularly impressive in conference in listening to all the input and questions from the clients” (2020)
Chambers and Partners
Tax: Corporate
Ranking: Band 2
“Very knowledgeable and able to take difficult concepts and make them easy to understand.” “He is a methodical thinker and a clear and persuasive advocate.” (2022)
“Technically excellent and a man who provides prompt and practically-grounded lines of argument.” “He is very personable and his advocacy is very clear.” (2021)
“Articulate, concise, persuasive in his advocacy and very effective.” “He’s a very bright, technically able, strong advocate.” (2020)
“Intelligent, user-friendly and very thorough.” “Very courteous, very prepared and methodical.” (2019)
Tax: Private Client
Ranking: Band 2
“He is technically very, very good.” “A very measured and strong individual.” (2022)
“He gives pragmatic and sensible advice and does a very good job.” “Good, thorough and fair, he is a pleasure to be against and very amenable.” (2021)
“Offers excellent advice and knowledge when it comes to cases concerning estates with offshore trust and tax aspects.” “Approachable and very practical.” (2020)
Tax: Indirect Tax
Ranking: Band 3
“A talented revenue litigator who really knows his stuff.” (2022)
“He takes a very practical approach and has the ability to explain matters both to clients and to other professionals. He is particularly impressive in conference.” (2021)
“A brilliant lawyer who knows SDLT like the back of his hand.” “He is particularly good on VAT and film finance issues and is a genuine expert on all tax-related matters.” (2020)
The Legal 500
Tax: VAT
Ranking: Leading Silk, Tier 4
“Exceptionally bright and thoughtful, providing practical advice.” (2021)
“He has immense clarity of thinking and presents a clear and succinct legal analysis, which is also practical and pragmatic.” (2020)
“Specialises in all areas of revenue law.” (2019)
Tax: Corporate
Ranking: Leading Silks, Tier 3
“Exceptionally bright and thoughtful, providing practical advice.” (2021)
“He has immense clarity of thinking and presents a clear and succinct legal analysis, which is also practical and pragmatic.” (2020)
“He thinks around problems and suggests superb alternatives.” (2019)
Private Client: Personal Tax
Ranking: Leading Silks, Tier 3
“Provides very clear and practical guidance. He has a thorough knowledge of the law and its implications.” (2021)
“Personable, pragmatic and finds solutions.” (2020)
“He is clear, concise and practical.” (2019)
Publications
- Contributor to Tax Litigation Handbook (Bloomsbury)
- Atkins Court Forms (Revenue)
- Tax Planning and UK Land Development and Tax Planning and the Family Home (both Key Haven Publications plc)
- Contributor to Simons Direct Tax Service and Tolley’s Corporation Tax Self-Assessment
- Joint Editor of Potter & Monroe’s Tax Planning
Memberships
- Chair of the Revenue Bar Association (July 2022 onwards)
- Chancery Bar Association
- London Common Law & Commercial Bar Association
- Stamp Tax Practitioners Group
- Society of Trusts and Estate Practitioners